DLF Ltd to pay Rs 630 crore within 3 months: SC
The Supreme Court (SC) on Wednesday passed an interim order directing property developer DLF Ltd to pay within three months the Rs. 630 crore penalty imposed by the CCI (Competition Commission of India). This penalty was imposed for abusing its dominant market position.
CCI chairperson Ashok Chawla talked about the implications of the ruling for consumers and companies in details. This is the first time that a penalty imposed by the competition watchdog has been upheld by the SC. SC wanted to support the CCI and safeguard the interests of the buyers.
DLF had filed an appeal for the appellate tribunal and then to the Supreme Court. So this in a way vindicates the decision of the commission three years ago but it is part of the ongoing legal process. Chawla feels that the CCI’s intervention in the DLF case will send a warning signal to the real estate builders. They will not misuse their dominant market position and take the buyers for granted.
DLF pleaded that it should be granted at least six months’ time to deposit the amount. However, the bench comprising Justices Ranjana Prakash Desai and N V Ramana said it was inclined to grant three months’ time only.
The CCI in 2011 had found DLF violating fair trade norms and imposed a fine of Rs 630 crore on it following a complaint by Belaire Owners’ Association in Gurgaon. It was in May 2010 that the buyer’s association had complained against DLF.
Source- Mint
